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Strategies & Market Trends : Analysis Class for Beginners

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To: TechTrader42 who wrote (1345)	5/2/2001 7:12:35 AM
From: Arthur Tang	Read Replies (1) of 1471

Liquidity calculation is easy in TA. It is the daily trading volume x the bid or ask offers(price). In the case of outstanding shorts; the cash available is the sum x the average shorts' cost, which has to be calculated from volume data. Which is on the trend lines going up, the volume of ask minus the volume of bids each day(net) x the ask offer. The average cost of shorts however becomes the resistance in TA(generally will pull back 30% from the immediate peak in the curve). Bull pan bosses(brokerages) advise the inside market makers how to make bid and offers by the liquidity interpretation(average daily volume). Therefore liquidity predicts supply and demand which effects offers. Good luck on all your investments.

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